When unethical practices harm relationship outcomes: testing the influence of consumer-perceived unethical behaviour on trust and satisfaction in the banking sector

Author:

Kanyurhi Eddy BalembaORCID,Bugandwa Mungu Akonkwa DeogratiasORCID,Murhula Lusheke Bonheur,Cubaka Patrick Murhula,Kadundu Karhamikire Paul,Bucekuderhwa Bashige Célestin

Abstract

PurposeThe study has two objectives: (1) expand our knowledge of the relationship between unethical behaviour and both trust and satisfaction and (2) demonstrate that unethical behaviour research should be examined multi-dimensionally.Design/methodology/approachData were collected by resorting to a mixed methods approach. First, individual interviews were performed with 31 bank consumers from six main commercial banks in Bukavu city in the Democratic Republic of the Congo. Interview notes were submitted for content analysis to identify items and components that underpin the unethical practices construct. Second, a quantitative survey was conducted with 410 consumers from the same six banks. An aggregated-disaggregated structural equations modelling approach was used to test the impact of unethical practices on relationship outcomes through two studies. Study 1 tested a model that links unethical behaviour as a one-dimensional construct to trust and satisfaction. Study 2 tested a model that directly connects the four specific unethical behaviour components to both trust and satisfaction.FindingsResults from study 1 reveal that perceived unethical behaviour negatively influences consumer trust. Results also confirm that trust positively influences customer satisfaction. Results from study 2 confirm that unresponsive, disrespect and lying behaviours negatively influence both trust and satisfaction. Banks which are involving in those specific unethical behaviours can neither satisfy their consumers, nor maintain a sustainable and profitable relationship with them. Therefore, unethical behaviours harm the relationships outcomes in the banking sector.Research limitations/implicationsThe perceived unethical behaviour scale derives from a single data set and its reliability and validity need to be improved. Relationships between constructs are tested in a more direct way and ignore moderating variables. Perceived unethical behaviour is connected to relationship outcome variables while its impact on firms’ metrics have been ignored.Practical implicationsBanks have to understand customers’ perception of unethical behaviours and find a way to overcome them. Banks should recruit, motivate and retain employees who demonstrate an ethical inclination in the service encounter and create structures and mechanisms in order to monitor and manage unethical practices.Social implicationsBanks employees' unethical behaviour and practices not only damage the trust and reputation of banks but also can lead to frustration on the part of customers and damage their relationship with the institution. Our paper is a warning of this danger and might improve the social interactions between organisations (in general) and customers.Originality/valueUnethical behaviour is measured with a four-component scale in contrast to previous studies that have used bi-dimensional or one-dimensional scales. The study tests a disaggregated model that links four components of perceived unethical behaviour to relationship outcome variables. Perceived unethical behaviours are analysed from the customers’ perspective by resorting to mixed methods strategy.

Publisher

Emerald

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